WT/DS599/1, G/AG/GEN/179  
G/SPS/GEN/1873, G/L/1383  
 
14 January 2021  
(21-0447) Page: 1/4 
  Original: Spanish  
 
  
PANAMA – MEASURES CONCERNING THE IMPORTATION  
OF CERTAIN PRODUCTS FROM COSTA RICA  
REQUEST FOR CONSULTATIONS BY COSTA RICA  
The following communication, dated 1 1 January  2021, from the delegation of Costa Rica to the 
delegation of Panama , is circulated to the Dispute Settlement Body in accordance with Article 4.4 of 
the DSU . 
_______________  
 
 
My authorities have instructed me to request consultations with Panama  pursuant to Article s 1 and  4 
of the Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU), 
Article  19 of the Agreement on Agriculture, Article 11 of the Agreement on the Application of Sanitary 
and Phytosanitary Measures (SPS Ag reement), and Article XXII of the General Agreement on Tariffs 
and Trade 1994 (GATT 1994), with respect to measures taken by Panama that restrict or prohibit 
the importation of various products originating in Costa Rica, including : (i) strawberries ; (ii) milk 
products ; beef; pork; processed poultry meat; cured beef, pork and poultry  products  (including ham, 
sausages, mortadella , bacon , chorizo made of  pork, chicken and turkey , pâté, pepperoni, salam i, 
legs, ribs, loin of pork , roast beef  and beef loin ); prepared beef, pork and chicken, chicken and 
turkey breast , pork rind and dry chorizo ; and fish food ; (iii)  pineapples ; and (iv) plantains and 
bananas .  
 
I. Measures at issue  
The measures covered by this request for cons ultations include, but are not limited to, those  
described below . 
(a) Measures restricting or prohibiting imports of strawberries originating in Costa Rica  
On 20 February  2020, through communication AUPSA -AG-051-2020, and without prior notice, 
Panama took the decision to ban imports of strawberries from Costa Rica due to the alleged detection 
of oxamyl residues in shipments of Costa Rican strawberries - sent in February 2020 - that exceeded  
Panama's maximum levels for this substance, established  in Executive Decree No. 467 of 
7 November 2007 . 
According to the above -mentioned communication from Panama, the ban on these imports will be 
maintained until the phytosanitary authority of Costa Rica  indicates that it has taken  corrective 
measures .  
In this respect , Costa Rica provided Panama with relevant information on this matter  through a 
number of  communications , including official letters DSFE -0343-2020 of 5 May 2020 and 
DSFE -0525-2020 of 12 June 2020. Nevertheless, despite there being no  evidence of the use or 
presence of oxamyl in the production of strawberries  in Costa Rica , Panama has maintain ed the ban 
on imports of this Costa Rican product, causing the market  to close dow n completely .  WT/DS599/1 • G/AG/GEN/179 • G/SPS/GEN/1873 • G/L/1383  
 
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  (b) Measures restricting or prohibiting imports of milk products ; beef; pork; processed poultry 
meat; cured beef, pork and poultry products (including ham, sausages, mortadella, bacon, 
chorizo made of pork, chicken and turkey, pâté, pepperoni, salami, legs, ribs, loin of pork, 
roast beef and beef loin); prepared beef, pork and chicken, chicken and turkey breast, pork 
rind and dry chorizo; and fish food  originating in Costa Rica   
Panama decided, witho ut any prior notic e, not to renew the sanitary approval that allowed various 
Costa Rican plants to export to Panama milk products ; beef; pork; processed poultry meat; cured 
beef, pork and poultry products (including ham, sausages, mortadella, bacon, choriz o made of pork, 
chicken and turkey, pâté, pepperoni, salami, legs, ribs, loin of pork, roast beef and beef loin); 
prepared beef, pork and chicken, chicken and turkey breast, pork rind and dry chorizo; and fish 
food, which expired on 30 Ju ne 2020. Panama took this step even though the affected Costa Rican 
establishments had requested the renewal of their respective sanitary approvals sufficiently in 
advance. Unlike the practice previously applied to Costa Rican establishments and that applied  to 
other countries, the Panamanian authority refused to extend the validity of the approvals, thereby 
preventing the export of these products to Panama .  
In communication  AUPSA -AG-229-2020 of 10 July 2020, Panam a stated that instead of renewing 
the previo us approvals, it was, in this case, necessary to conduct  a new evaluation and approval 
procedure "from scratch", which  involved re -recognition of the Costa Rican sanitary system, and 
new on -site sanitary inspections and audits .  
In note  DG-1420-2020 of 24 November  2020 sent to AUPSA, Costa Rica stated that it was not 
appropriate to start the process "from scratch", taking into account the relevant international 
standards and applicable Central American regulations. In that note, the Director -General of the 
National Animal Health Service of Costa Rica (SENASA) therefore requested that exports  resume . 
Costa Rica has not, however, received any reply from the Panamanian health  authorities in this 
respect .  
Despite Costa Rica's long history of exporting milk products; beef; pork; processed poultry meat; 
cured beef, pork and poultry products; prepared beef, pork , chicken  and turkey; and fish food  to 
Panama, and Costa Rica's sanitary status  not having  changed in the slightest , Panama decided to 
maintain an import ban on these Costa Rican products without giving  any prior notice , and to date 
has not taken any steps  to allow for  the resumption of trade in these products . 
(c) Measures restricting or prohibiting imports of fresh pineapple originating in Costa Rica  
On 20 January 2019, through communication AUPSA/AG -032-2019, and without giving prior notice , 
Panama took the decision to ban imports of fresh pineapple from Costa Rica,  which were previously 
permitted in line with  the requirements established by Panama in Decision  AUPSA -DINAN -116-2008. 
Panama stated that the import ban was due to the alleged detection of the pink hibiscus mealybug 
pest (Maconellicoccus hirsutus ).  
According to the above -mentioned communication from Panama, the import ban will be maintained 
until Costa Rica indicates and provides information on its current phytosanitary status in pineapple 
production areas, in relation to the pink hibiscus mealybug (Maconellicoccus hirsutus ) and other 
pests .  
Costa Rica ha s explained to Panama in various communications, including official letters  
DSFE -083-2019 of 6 February  2019 and DSFE -0849-2019 of 10 October  2019, that its phytosanitary 
status has not at all changed, and that it has had no reports of the pest concerned being detected 
in pineapple shipments from Costa Rica to Panama .  
Despite this, Panama has not taken any action in response to the information provided by Costa  Rica, 
and is maintaining the ban on the importation into Panamanian territory of Costa Rican pineapple, 
thereby preventing trade in this product . WT/DS599/1 • G/AG/GEN/179 • G/SPS/GEN/1873 • G/L/1383  
 
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  (d) Measures restricting or prohibiting the importation of plantains and bananas originating in  
Costa Rica  
Panama prohibited  imports of plantains and bananas from Costa Rica, without prior notice, through  
communications AUPSA -AG-392-2019, rec eived on  24 October  2019, and AUPSA -AG-424-2019, of 
25 October  2019, respecti vely. In these communications, Panama stated that the importation of 
these products would remain prohibited until it had completed a technical review of the existing 
phytosanitary requirements . 
Subse quently , in communication  DM-N-1352-2019 of 18 December  2019, Panama changed the 
reason for prohibiting imports of plantains and bananas from Costa Rica, stating that the ban was 
due to the declaration of a national state of alert on account of the risk of introduction of the "fungus 
Fusarium oxysporum f. sp. cubense  tropical race 4 affecting  musaceae ". Panama stated that the 
adoption of new requirements for imports of plantains and bananas from Costa Rica would require 
a new risk analysis, which, in turn, would require verification visits to Costa Rica . 
Despite the fact that the pest concerned is absent from Costa Rican territory and that Costa Rica's 
phytosan itary status remains unchanged in this respect , Costa Rica has expressed its willingness to 
let Panama carry out verification visits. Nevertheless, Panama h as refused to proceed with these 
visits or to take any other steps to enable trade in plantains and bananas to resume  and maintain s 
a ban on the importation into Panamanian territory of plantains and bananas from Costa Rica . 
*** 
This request for consultations covers, in addition to the above -mentioned measures, any other 
measure that prolong s, replace s, amend s, implement s, extend s or appl ies, or otherwise maintains, 
the conduct described above . 
II. Legal basis for the complaints  
Each and every one of the measures described in Section I of this request for consultations appears 
to be inconsistent with each and every one of the following obligations assumed by Panama under 
the WTO covered agreements : 
• Article  2.1 of the SPS Agreement, given that the measures do not appear to have been 
developed or applied in accordance with the provisions of the SPS Agreement . 
 
• Article  2.2 of the SPS Agreement, because the measures do not appear to be applied only 
to the extent nec essary to protect human, animal or plant life or health,  or to be based on 
technical and/or scientific principles . 
 
• Articles  2.3 and 5.5 of the SPS Agreement, given that the measures appear to arbitrarily or 
unjustifiably discriminate between different WTO Members where identical or similar sanitary 
or phytosanitary conditions prevail . 
 
• Article  3.1 and 3.3 of the SPS Agreement, because the measures do not appear to be based 
on the relevant international standards, nor does there appear to be any scientific 
justification  for departing therefrom . 
 
• Article  5.1 of the SPS Agreement, since the measures do not appear to be based on an risk 
assessment, as appropriate to the circumstances . Consequently, the measures also ap pear 
to be inconsistent with the obligations set out in Article 5.2 and 5.3 of the SPS Agreement . 
 
• Article  5.4 of the SPS Agreement, because , when determining the appropriate level of 
sanitary or phytosanitary protection, Panama appears not to have taken into account the 
objective of minimizing negative trade effects . 
 
• Article  5.6 of the SPS Agreement, because the measures appear to be more trade -restrictive 
than required to achieve the appropriate level of sanitary or phytosanitary protection . 
 WT/DS599/1 • G/AG/GEN/179 • G/SPS/GEN/1873 • G/L/1383  
 
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  • Article  5.7 of the SPS Agreement, in that Panama's measures do not appear to meet the 
requirements for the provisional measures established in this provision . 
 
• Article  5.8 of the SPS Agreement, because, in spite of Costa Rica's requests, Panama has 
not provided an explanation of the reasons for the measures . 
 
• Article  6.1 of the SPS Agreement, given that the measures do not appear to be adapted to 
the sanitary or phytosanitary characteristics of the area  from which the product originated 
and to which the product is destined . 
 
• Article  7 and the provisions of Annex B  of the SPS Agreement, because it appears that 
Panama has failed to meet its transparency obligations with regard to  the measures at issue . 
 
• Article  8 and the provisions of Annex C of the SPS Agreement, since it appears that Panama 
has failed to meet its o bligations regarding control, inspection and approval procedures in 
relation to the measures at issue . 
 
• Article  I:1 of the  GATT 1994 , since Panama appears to have acted inconsistently with the 
most-favoured -nation treatment obligation in relation to the me asures at issue . 
 
• Article  XI:1 of the  GATT 1994 , because Panama appears to have acted inconsistently with 
the obligation not to adopt import restrictions or prohibitions . 
 
• Article  4.2 and note 1 of the Agreement on Agriculture, given that the measures at i ssue 
appear to constitute "quantitative import restrictions ", or in any case "similar […] measures ", 
within the meaning of note 1 of the Agreement on Agriculture .  
Furthermore , the measures described in Section I of this request appear to nullify or impair the 
benefits accruing to Costa Rica,  directly or indirectly , under the SPS Agreement and the GATT 1994. 
The measures do not appear to be justified under any provision of the WTO covered agreements . 
Costa Rica reserves its right to raise other matters , whether factual or legal, during the course of 
the consultations. T his request also covers any other amendments, replacements, extensions, 
related measures or implementing measures that relate to the in consistent measures at issue here .  
Costa Rica looks forward to receiving Panama's reply to this request and to setting  a mutually 
convenient date for consultations, with a view to resolving this dispute .  
__________